Renting Your Apartment to Family and Friends — A Smart Move or a Source of Headaches?

Renting your apartment to a cousin or a friend often seems like the safest and most reliable option. But it also has its downsides. Let’s look at the pros and cons of this arrangement and see whether this type of rental is truly right for you.

Renting to Someone You Know — What Are the Advantages

For many landlords, renting to someone familiar feels like a way to avoid the stress of finding tenants. But the benefits can go well beyond that.

Lower expectations for apartment standards

When you rent to a stranger, you often feel pressure to perfect every detail — repaint the walls, fix every defect, and make everything look just right. With family or friends, you can be more relaxed. Renting out a place that isn’t in show-home condition saves you time, money, and nerves.

Flexibility when problems arise

A leaking tap, an intercom that doesn’t work, or a cracked bathroom tile — when your tenant is a relative or friend, such issues don’t cause the same stress. You don’t have to fix everything immediately or rush to find a repair person. People you know tend to be more understanding, giving you extra time to react. Sometimes, they’ll even handle small fixes themselves, especially if they’re paying a very favorable rent.

Keeping an eye on the condition of your property

If you rent to someone you see regularly, you can easily monitor how they take care of the apartment. You’ll see how they use the furniture and appliances and how quickly things wear out. For many landlords, this peace of mind is invaluable.

More trust in your tenant

When renting to strangers, you never know what kind of person you’re dealing with. First impressions can be deceiving, and problems may appear later. Renting to family or friends reduces the risk of unpleasant surprises and gives you more confidence in your tenant.

Renting to Family and Friends — What Could Go Wrong

While this type of rental may seem safer, it comes with its own risks. It’s good to know them before you make your final decision.

Reduced profit potential

Family or friends often get a “special deal.” You might rent your apartment to them at a significantly lower rate — sometimes up to 30% below market value. If you’re buying yourself peace of mind, that may be worth it. But if you’re renting primarily for income, this discount can eat into your profits.

Trust can be misleading

We often assume that people we know will take better care of our apartment than strangers. But reality can surprise you. Distant acquaintances might not be as responsible as you expect — and they may rely on your relationship to excuse damage or delays.

Difficulty pursuing claims

Think about what happens if, after the tenancy ends, the apartment is damaged or needs major repairs. Will you feel comfortable asking your family member or friend to cover those costs? Or will it feel too awkward, leading you to absorb the expenses yourself? It’s worth considering these possibilities before deciding whether renting to someone close is right for you.

Renting to Family and Friends — How to Handle Problems

Renting your apartment to someone close can work out great — but not always. To minimize risks, make sure to draw up a proper tenancy agreement. This is especially important when you’re renting to acquaintances rather than close family.

If you’re considering renting to a distant aunt or a co-worker simply because you’re afraid of getting a difficult tenant, there are smarter ways to protect yourself without losing income. One of them is using a rental deposit surety servicefrom Bingo-Rent.

Bingo-Rent provides a rental deposit surety service for your tenant and performs a thorough tenant verification process, checking their identity, financial capacity, and credit score. This significantly reduces the risk of renting to someone unreliable or insolvent.

At the end of the tenancy, you and your tenant simply complete a short form, and Bingo-Rent takes care of all the formalities and the deposit settlement. With this solution, renting your apartment — even to a complete stranger — becomes much safer and far less stressful.